Homeownership would become more accessible under proposed federal bill

Americans who have self-directed IRA accounts would be able to use their retirement savings to purchase a primary residence for themselves or an immediate family member under a new bill recently introduced by U.S. Rep. John Curtis (R-UT).

The Home Ownership, Mortgage, and Equity Savings (HOMES) Act, which has not yet received a number in the congressional record, aims to make homeownership more accessible for more people.

“Homeownership is more than just having a place to live — it’s about building roots in a community and creating a solid investment for the future,” Rep. Curtis said Wednesday. “Utahns should be allowed to use their own money to achieve homeownership, and this legislation would enable families to pool their resources more effectively and invest in their future.”

A self-directed IRA operates similarly to a traditional IRA but allows the account holder to control their own investment decisions, including real estate, according to a bill summary provided by the congressman’s staff.

Under current rules, funds from a self-directed IRA are restricted to investment properties, with limitations that prevent renting to family members, the summary says.

If enacted, the HOMES Act would change that and allow individuals to use their self-directed IRA to buy homes for themselves or immediate relatives, such as parents, children, or grandchildren.

Additionally, the bill would establish parity between government employees who use the Thrift Savings Plan — who are currently allowed to borrow up to $50,000 for a primary residence — and those with self-directed IRAs in the private sector, by raising the borrowing limit for primary residences to the same $50,000 level, according to the text of the bill.

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